The Renewables Infrastructure Group Limited, a London-listed investment company focused on renewable energy, has announced the signing of a ten-year Power Purchase Agreement (PPA) with UK telecommunications provider Virgin Media O2. The agreement covers the Garreg Lwyd wind farm in Wales and the Earlseat wind farm in Scotland, with a combined installed capacity of 50 megawatts.
A fixed-price contract over ten years
The contract is based on a “pay-as-produced” model, securing a fixed price for each megawatt-hour delivered throughout the term of the PPA. This structure provides The Renewables Infrastructure Group (TRIG) with long-term revenue visibility while enabling Virgin Media O2 to secure its renewable electricity supply at an agreed rate, independent of market fluctuations.
Both projects are managed by Renewable Energy Systems (RES), TRIG’s operational manager. TRIG, whose Investment Manager is InfraRed Capital Partners, follows a strategy centred on actively managing revenues generated from renewable electricity assets across Europe.
A revenue-focused management strategy
The signing of this PPA is part of broader measures aimed at diversifying and stabilising the company’s long-term income. According to TRIG, corporate power purchase agreements allow renewable energy assets to be backed by contractual cash flows, enhancing financial predictability for shareholders.
The contract also offers Virgin Media O2 a locally generated source of renewable electricity, a strategic factor in an evolving energy market.
